Military Spouses Residency Relief Act

As the year comes to an end, tax season is approaching once again, and if you are a military spouse, you should be aware of an act signed into law last November. http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:s475enr.txt.pdf
An amendment to the Servicemembers Civil Relief Act, called the Military Spouses Residency Relief Act
states that “spouses of military personnel who move because their spouse is posted for military duty will be treated as not having changed residency for tax purposes” (http://www.journalofaccountancy.com/Web/20092342.htm). This means that if you are a military spouse, you can retain legal residency in your home state and income you earn in a different state will not be taxed. Additionally, if the servicemember gets orders to reside in a state with no state income tax, both the servicemember and spouse can change their residence to that state while in active duty status.

The amendment will also eliminate complicated tax return filings, because both the military servicemember and his or her spouse will remain residents of their home state. It also has similar implications for voting and certain aspects of land ownership.

Spouses who qualify for tax exemptions under the new amendment may also be eligible to file an amended state tax return for the year 2009. If you think you qualify, you can speak to an Acuity tax professional by calling (770) 783-5223 or emailing us at info@acuityabs.com to determine how to proceed.